DUTCH GETTING TOUGHER ON INTERNET GAMBLING

1 February 2008

Dutch dichotomy as the state continues to protect its monopoly


The Dutch government is cracking down on Internet gambling regardless of EU principles on the free movement of goods and services between European Union member nations, according to the Volkskrant newspaper. Yet state gambling advertising has increased.

Banks and credit card companies are to be held criminally liable if they facilitate Dutch citizens in gambling on foreign internet sites under new justice ministry regulations, the newspaper reported today (Wednesday).

And a list of presumably government banned websites is to be circulated this spring, the report continues.

Internet gambling is in the Netherlands legally confined to the state-owned monopoly holder Holland Casino, which is thought to handle some 400 000 gamblers online. But the justice ministry says at least 30 'foreign firms' are targeting Dutch users.

The Dutch government is already under pressure from the EU compliance arm, Charlie McCreevy's European Commission, to meet EU requirements on permitting access to Dutch players by online gambling companies in member nations. The Commissioner has said that he will not hesitate to take state monopoly protectionist nations before the European Court of Justice.

However, the Dutch government is actively increasing spending on advertising its state-run gambling in contravention of EU rules, according to a leaked letter from internal markets commissioner Charlie McCreevy, reports ANP news service. While the government claims advertising expenditure for the Lotto lottery has fallen, figures from research bureau Nielsen Media show that the number of adverts for the Lotto actually rose 42 percent between 2002 and 2004, McCreevy wrote in the correspondence.

In addition, evidence that the state monopoly on gambling has led to a fall in addiction is questionable and there is no evidence at all to prove it has reduced gambling-related crime, McCreevy added.

The commissioner believes that the Netherlands is pursuing a ‘policy of expansion’ when it comes to the state monopoly for gambling and says there is no reason other European companies should be barred from entering the Dutch gambling market.

State-owned De Lotto and Holland Casino have a monopoly on commercial gambling in the Netherlands and the government has recently given Holland Casino exclusive rights to run internet gambling in the Netherlands, powered by software developer Cryptologic.

A number of foreign operators are currently trying to build land casinos in the Netherlands but have been refused licences.

A Dutch Justice Ministry spokesman told ANP that the cabinet has replied to McCreevy's claims and that the government maintains its view that the state’s gambling monopoly reduces addiction and crime and is therefore acceptable in terms of EU principles.

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